Data miners in new gold rush
In the nineties Tieto had a vision of an information society where the most of the economic transactions would be related to information. Now we are there.
Recent study indicates that the flows of data now generate more economic value than the global trade of goods.
Name of the new game: data driven business models
Some of the most successful businesses today do not own nearly anything else except data. Whole business logic in these businesses is based on data and its smart utilization. Data is the true success factor for example for Uber. Platform businesses utilize data for matchmaking. Uber utilizes location and demand information to set rates for drivers. When demand increases in geographical area and there soon seems not to be enough supply, in real time driver rates get higher in the area attracting new drivers to serve the demand.
In addition to matchmaking in platform businesses data is utilized in filtering and to access control. Platform collect data about ecosystem member behaviour and interest, for example from buyers and sellers. Algorithms are used to guide user journeys, boost wanted behaviour and restrict unwanted one. Smart platform business models and business logics would not be possible without data. Data is the cornerstone for value creation and thus the most important asset in business.
Data based digital products replace traditional
In addition to new digitalized business models also digital products and product extensions grow rapidly. The volume of internet traffic is today 45 times bigger than ten years ago. Music, movies, books and many other products are digitalized, which is also visible in decline of the sales of traditional goods . This development has not yet reached its peak. For example in 3D printing we will see totally new business models and opportunities.
Growth of data enabled business models and boosting sales of digitalized products are also visible in the growth of existing platform. For example in Facebook there are now more users than there are citizens in China or India. Utilizing existing platforms like Facebook, Linkedin or eBay is thus low entry barrier approach to support and develop business. Already existing platforms have enabled developing countries and businesses outside of traditional industrial mainstream to get quickly a huge customer base and a quick entry to market. Barriers are not low just for small new entrants but also big players can benefit from these opportunities.
Data is fuel for growth. We in Tieto help you to harvest existing data to support current business and enable new revenue by business process automation and user experience development. Tieto is also building totally new businesses for our customers by creating new digital start-ups with data enabled digital products.
Today’s gold rush to prosperity is driven by data enabled digitalization. What is your golden idea to leverage the possibilities of data?
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Read more about digitalization: www.tieto.com/digitalize